Council hears introduction of NewCold Phase 3 bond ordinance to fund $505 million expansion

A first reading of Ordinance 2025-32, authorizing taxable economic development revenue bonds for NewCold Project Phase 3, was introduced at the Lebanon Common Council meeting on Oct. 14. The ordinance would allow the city to issue up to $20,500,000 in bonds; officials said the bonds would be paid from incremental real and personal property taxes generated by the project, and would carry no direct city pledge.

Catherine Panello, an attorney with the law firm Dinsmore & Shohl, told the council the ordinance and related financing documents — a trust indenture and a financing agreement — were submitted after review and a public hearing by the Lebanon Economic Development Commission. “This proposes to issue bonds for NewCold Project Phase 3 in an amount not to exceed $20,500,000,” Panello said. She added the bonds are planned to be sold to a bank and that the NewCold expansion would provide a guarantee; repayment would come from the project’s incremental property tax receipts.

Ted Butler, incentives manager for NewCold, described the proposed expansion as a major private investment in Lebanon. “To date, we’ve invested about $335,000,000 in the facility at 904 Edwards Drive, and we’ve created about 300 jobs,” Butler said. He said Phase 3 would add roughly $505,000,000 in capital investment and about 200 jobs, and that the completed campus would be NewCold’s largest facility globally at nearly one million square feet.

Mayor Gentry and council members asked for plain-English clarification that no general fund or other city money would back the bonds; Panello and Butler said the bond repayment source is incremental taxes from the project and that the city would not be pledging its general revenues. The ordinance introduction followed a staff summary that the Economic Development Commission held a public hearing and transmitted a report to the Plan Commission in accordance with Indiana law.

The ordinance was introduced for first reading; council discussion ended with plans to take up a second reading and possible vote at the council’s Oct. 27 meeting. No formal vote on the ordinance was taken on Oct. 14.

Ending: The council will consider Ordinance 2025-32 again on Oct. 27. City staff indicated the bond purchaser is expected to be Zions Bank and that NewCold will provide a project-level guarantee; final terms were not set at the Oct. 14 meeting.